Digital Decade – Hungary lagging behind in digitalisation

According to the Digital Decade, an index measuring the digital development of EU Member States, Hungary has a high-quality optical network infrastructure and a strong position in the field of digital public services, in particular e-health. However, our country is still lagging behind in terms of business digitalisation and the use of key technologies – especially in the basic digital skills of SMEs and the general public. 

There are not enough digital professionals either in Hungary or in the EU Member States, but the most pressing problem at European level is the lack of technological sovereignty in the areas of semiconductor manufacturing, critical infrastructure, cloud services and cybersecurity.

According to the European Commission’s State of the Digital Decade report 2026, the European Union’s biggest backlog is in terms of technological autonomy and critical infrastructure. While the roll-out of 5G mobile networks in the Member States is progressing well, the take-up of fixed fibre networks and high-capacity internet is well below expectations.

Digital sovereignty remains a challenge for Europe

Even more critical is the situation in the global semiconductor market, where the EU currently holds only 9% of the 20% target for 2030. This exposure to external markets also leads to serious dependencies in the area of cloud services and cybersecurity, which are exacerbated by the rapid rise of AI and the associated computing capacity needs.

Another critical area is the preparedness of human capital and businesses, where the lack of digital skills is the main bottleneck. The share of ICT specialists in the labour market is still only around 5%, which is half of the 2030 target, and the presence of women on this path is particularly low. This directly hampers the digitalisation of small and medium-sized enterprises, which are also facing a serious lack of resources.

We are doing well in networking and e-administration

According to the results of this year's report, Hungary continues to perform excellently in the deployment of telecommunications networks, in particular in the coverage of high-capacity and optical connections, which are significantly above the EU average.

As last year, digital public services, including eGovernment functions for citizens and digital health services (such as the OSCE) are outstanding areas that enable Hungarians to access their full medical history and medical records transparently and digitally.

We do not use digitalisation as an individual or as a company

The above-mentioned advanced telecommunication infrastructure can provide a stable basis for the digital economy of the future, but despite its existence, the Hungarian economy is not able to fully reap the benefits of digitalisation.  The most critical backlog is in the digitalisation of businesses, especially in the SME sector. Hungary lags behind EU competitors in the integration of cloud services, advanced data analytics tools and artificial intelligence for business purposes.

This technological gap is exacerbated by the low level of digital skills of the population: only 57.3% of Hungarians have basic skills, which is below the EU average of 60.4% and very far from the target of 80% by 2030. 59.8% of Hungarian SMEs have such knowledge, well below the EU average of 71.4 % and significantly below the target of 90 % by 2030. Similarly, SMEs with complex digital knowledge are lagging behind: At home, the ratio is 5.5 percent compared to 9 percent in the EU.

The lack of basic digital literacy is a major barrier both to an even wider use of digital public services by the population and to the modernisation of the labour market, maintaining the digital divide among older generations and the rural population.

“The report clearly shows: a significant number of businesses and people are not yet able to fully exploit the potential of digital technologies. The professional opinion of IVSZ also drew attention to the fact that besides technology, knowledge is the basis of 21st century competitiveness: there is a need for human capital in which basic digital and AI skills, STEM and ICT competences, and a lifelong learning perspective are widely present. The digital convergence of SMEs, the development of basic digital skills and the alleviation of the shortage of ICT specialists cannot be postponed any longer, without which the competitiveness of the Hungarian economy will also be compromised. That is why we have reconvened the members of the Coalition for Digital Skills and Jobs created by the IVSZ: the need for joint thinking between professional organisations, companies, government and academia, coordinated action and programmes that truly help businesses and workers in the digital transition" - Krisztina Tajthy, Secretary-General of the IVSZ.

However, according to data from the special Eurobarometer survey of 2026, Hungarians are extremely committed to digital developments and have strong expectations of both national and EU decision-makers. 85% believe that digital policy should be a high or high priority for the future of the European Union. This rate is significantly higher than the EU average of 79%, indicating the openness of domestic society.

SME catching-up budget needs to be saved

The implementation of the Hungarian national strategic roadmap for achieving the goals of the Digital Decade is in an intensive phase, but raises serious sustainability issues in terms of funding cycles. The Hungarian National Roadmap includes 44 measures supported by a total budget of EUR 2.489 billion, with a total State budget of EUR 575 million.

Given that 48% of the measures will run out by the end of 2026, Hungary urgently needs to ensure continuity of funding. The sudden depletion of resources poses a serious threat to the maintenance of the results achieved so far and to the digital convergence of the Hungarian SME sector.